Asked by Ahmed Nasser on Jul 17, 2024
Verified
The terms "standard quantity allowed" or "standard hours allowed" mean:
A) the standard output in units multiplied by the standard input allowed.
B) the actual output in units multiplied by the standard input allowed.
C) the actual input in units multiplied by the standard output allowed.
D) the actual output in units multiplied by the standard output allowed.
Standard Costs
Pre-determined or estimated costs used for planning and control purposes, often used to measure performance by comparing them with actual costs.
Direct Labour
The wages and other compensation paid to employees who are directly involved in producing goods or providing services.
- Understand the concepts of standard costing, including standard quantities, rates, and cost variance analysis.
Verified Answer
BS
Brett SiegelJul 18, 2024
Final Answer :
B
Explanation :
The terms "standard quantity allowed" or "standard hours allowed" refer to the amount of input (materials or labor) that should have been used for the actual output produced, calculated as the actual output in units multiplied by the standard input allowed per unit.
Learning Objectives
- Understand the concepts of standard costing, including standard quantities, rates, and cost variance analysis.
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